Economic Perspective 28 August 2026
The Latest Trending Economic News Curated for You by Balmoral Group Australia
Hello Dear Readers,
Diesel prices have spiked again, up 36% since their winter low, and Australian farmers are caught in the middle of it. This week we're exploring how policy and markets are facing different climate risks.
Australia has released its first National Environmental Standards since reformation of the EPBC Act, introducing new obligations around Matters of National Significance, offsets, community engagement, and data sharing for major projects. The Treasury followed with guidance documents advising organisations on how to plan for the climate transition.
Meanwhile, Ukraine's strikes on Russian refineries have pushed fuel prices sharply higher, squeezing farm margins just as an incoming El Niño threatens summer crops, a discussion article points out the risks to agriculture of interacting fuel price spikes and potentially severe El Niño effects, and new legislation in New Zealand prevents tort liability claims against corporations for greenhouse gas emissions damages, aiming to increase investment certainty.
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Happy reading and have a lovely weekend!
New environmental standards available as more reforms begin
Australia's first set of National Environmental Standards have been published, containing four standards regarding Matters of National Environmental Significance (MNES), environmental offsets delivering a net gain, community engagement, and the reliability, collection and sharing of data. Project proposals must be consistent with Standards, and which apply when proposals are moving through environmental assessment pathways, strategic assessments, accreditation arrangements, or plan to impact within bioregional planning areas. The remaining environmental reforms will begin by 1st of December. Read more here.
Australian farmers scaling back
Interactions between weather conditions and input prices have always been the driving force impacting agricultural yields, and recent events highlight this. Ukraine's bombardment of Russian oil refineries has removed a massive supplier of global diesel markets (despite trade sanctions, Russian exports have continued up to this point), causing oil prices to spike once again and squeezing farmers. Our Winter harvest will remain respectable, although slimmer profit margins for farmers has reduced risk-taking on large crops, potentially reducing crop area by 12% and reducing winter crop yield by 21%. The incoming El Niño may also hit summer crops, specifically sorghum and rice, potentially exacerbating crop constraints. Read more here.
New Zealand Curbs Climate Litigation Against Major Emitters
NZ has passed legislation that prevents court claims against major corporate greenhouse gas emitters for damages, specifically tort liability. The policy aims to increase investment certainty given current global conditions, although opponents argue it restricts judicial oversight and potentially undermines corporate environmental accountability. The law directly effects recent litigation by Māori climate activist Mike Smith against six major businesses, including Fonterra and Z Energy, Read more here.
Climate‑related transition planning guidance
This week the Treasury released new guidance helping organisations plan for operational impacts of the net zero transition. Approaches are segmented based on sector, value chain position, business size and complexity, and climate risk exposure, with recommendations varying across these groups. Planning actions cover several areas such as: stakeholder engagement and scenario analysis, identification of "transition levers", detailed in sector-specific plans, setting objectives in line with domestic and international standards, and taking action. Examples include water and material efficiency measures, product redesign, procurement of low-emissions vehicles, and more. Read the guidance here.
Diesel Fuel Price Snapshot
This figure from Business Insider plots the market price of diesel fuel traded as a wholesale as a commodity. The recent spike caused by Ukrainian long range strikes on Russia's refineries is evident, with prices rising 36% since end of June, but still below the highs seen early in 2026.
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